HIGH DAIRY PAY=OUT

Taranaki Daily News, 7 August 1930, Page 19

HIGH DAIRY PAY=OUT

RAHOTU COMPANY’S YEAR PAY-OUT OF Is 7d FOR SEASON. THE ANNUAL MEETING HELD. i Thirty-five shareholders of the Rahotu Dairy Company were present at the 23rd annual meeting yesterday. Despite the low prices ruling a payment of le 7<l per lb. butter-fat on milk supplied for cheese-making was made for the year. Mr. Walter C. Green presided. During the afternoon additional payments amounting to over £lO,OOO were made to shareholders. The figures showed a very satisfactory increase in the output from the factory, and that the ratio ot cost had been considerably reduced, stated the report? The directors regretted; that prices for cheese through the season had been very disappointing, and: although satisfactory sales were! made when it was possible, the prices realised were above the value of the London market, which had remained low during the year. The balance to credit bf profit and loss account on closing the books was £11.176 Gfi lid, and after providing £360 for interest on shares and £487 I3s Gd for depreciation of the residences and factory there remained £10,328 13s sd. The directors proposed payments cf Id' per lb. butter-fat on cream supplied from January to May. 1930, which would make the payment for cream for the year slightly over Is 4d per lb. butterfat, and 3Jd per-lb. butter-fat ou milk supplied -O. cheese-making, which would make the payment for cheese milk 19 7d per lb. butter-fat- for the year, in addition to 5 per cent, on fully paid shares. These payments would absorb £10,2(0 and leave £5B »13s 5d to be eai i ied forward or otherwise’ dealt with. The weight of butter made from each pound of butter-fat used for butter was 1 13531 b. The weight of cheese made from each pound of butter-fat used for cheese was 2.67451 b. THE SEASON’S STATISTICS. Statistics for the year were:—Milk received—For butter-making, 599,0551 b.; for cheese-making (separated f)17.000ib.), 16.834,5851 b., a total of 17,433,6401 b. But-ter-fat in milk, butter-making, 27,619.51 lb- cheese fat separated, 38,4171 b.; cheese-making, 702,673.831 b.; less separated; 38,4171 b.; a total of 730.293.341 b. Average test, 4.19; cream received, 33,0151 b.; butter-fat in cream, 13,011.58 lb.; average test, 39.4; cheese made (factory weights), 1.776,5971 b ;; lbs. milk to lbs. cheese (factory ’weights), 9.31 b.; lbs. cheese per lb. butter-fat used in cheese-making, 2.67451 b.; average price received per lb. cheese (sale weights), 8.327 H; whey butter made. 47,3761 b.; creamery butter made, 87,6661 b.; average advance per lb. butter-fat, 15.5 d; average o-rade. cheese. 91.906; average grade’ whey butter, 88,949;_ average o-rade, creamery butter, 92.325. ° In moving the adoption of the report and balance-sheet the chairman congratulated the shareholders on a successful year.. Though prices had been lower than was anticipated at the beginning of the season, the company had not fared badly. The system if selling the output from time to time had proved a success. Of late years it had not been possible to sell the whole output at once but they had sold in smaller lots of about 100 tons when an advantageous offer was made. The principle of selling had proved successful in the past, and they had no reason to regret the policy. The'year when the ontro] Board was in full operation the directors had been compelled to consign and the result had not proved a success. He hoped that such a thing would not occur again. Prices were not very high at the present time, but if the directors had anything like a reasonable offer he thought that’selling was the better principle. It would bo possible thus to make better advances and help the shareholders. Prior to Christmas some of the shareholders had approached the directors thinking that full payments should bo made earlier. He pointed out that the directors were trying to keep down the bank interest.- The money was not received until the produce was sold f.o.b. and should advances be made prior to that 7 per cent, would have to be paid ‘ on the money. He had been asked at tl* o time why only Is 4d was paid when the factory had sold at lo 6d. • He | thought it always better to have some- : thing for the end-of the year. STANDARDISING ADOPTED. " After Christmas the factory had, started ■ manufacturing standardised cheese. It was more or less forced on them by the fact that the other com-

panics had adopted the policy. Ho did not, however, look favourably on the policy, for already it had reacted to the detriment of the producers. The standardised “bug” had hold of South Tara-: naki people. He contended it was no use standardising unless there was -a very high test and butter-fat -was above: Is 5d per lb. If the extra expenses of manufacturing the article were totted up it -would be found that there was a loss. He was satisfied it was not’ a success. The Rahotu factory had not received any complaints to. date and the grading was good, but lie had heard of complaints from merchants being received by other factories. However, it was very hard for one factory to drop the policy, and it almost "seemed they would have to adopt it. He was satisfied the food value was not present m the standardised article, and it was only a matter of time . when this would be appreciated. He advocated cheese-mak-ing from whole milk. However, Government experts were investigating, and he felt sure more would be heard. Much attention, had been paid during the. year to keeping the buildings in order. There was a new truck and whey sheds and the house had been renovated. These had cost £730, but it was necessary to keep the factory up -to standard. The policy of the N.D.A. .was discussed, the chairman outlining his views. -.

i There had been no trouble, with the |- staff and the: manager: had 'beep, a fiuc- ' cess all the time he had been with them, ' said the chairman.: He. thanked the manager, staff and the secretary for the way , they had carried out their duties. i The chairman moved the adoption of . the report and balance-sheet arid Mr. R. Fleming seconded it. :i; . . i j Referring to the.;factory’s policy Mr. G. Gibson" said : that, .although, it wus one of selling and not: of-:consigning the . shareholders”did not; escape certain additional charges. The. amount:; of .produce shipped was ..regulated-:, by the board, with the result .that nearly 40 per ; cent, of the goods was kept in storage i lor periods up to two. months,- thus incurring charges that, .'.would, not have been.imposed.had .the produce been ship* ped a month earlier. The lorry had.done I good work and the directors had reduced i the charges frotn July: iL.-In addition, 1 mileage used to be ji-t’.-Ss. per .mile and i was now reduced to 2s.

I In answer to. a;question-,from- Mr. R. ; Fleming the chairman-said the directors j felt they ought to;iretain the services i of the <Jniry instructor ..-as he - was a 1 great advantage to ■ shareholders. . He i being a Government': official, it. meant 1 that offenders had to. carry out his instructions or cease sending milk to the factory. It was the only way to compel the bad supplier to make good. The I question of retaining the instructor had been discussed at a recent meeting. Oaonui, Rahotu, Kahui Road. Pungarehu and Omata had formed a group and it was probable that Newall Road and i Warea would join. At the N.D.A. conI ference at Hamilton a resolution had I been passed asking the Government to I make the attention of dairy instructors ; compulsory. If this occurred the group • would probably be taken over and perI he os one or two more factory districts • added. i Mr. Gibson pointed out that whether i the Government made the movement i compulsory or whether it remained voluntary only one-third of the cost would b contributed by the Government. I The report and balance-sheet were .adopted. I The retiring directors, Messrs. N. C. Morgan, G. E. C. Prosser and W. H. Butler, were re-elected unopposed. Mr. i Vai Duff was appointed auditor. I ft was agreed to grant the chairman j r - d directors the same honoraria as last year. I A long discussion regarding the adopj tion of the intermediate credit system I was initiated by Mr. C. W. Field, who ; asked if the directors had considered it. The chairman replied that about two years previously the question had been raised but the articles cf association would not at the time allow it. Factories that had adopted the scheme had found 1 advantageous, provided the security was found. The company would be responsible. He saw no. reason why the scheme should not be adopted if care ; were taken with the security. He was, nowever, opposed to the factory becoming a trading association for buying manures, etc., but in this case there would be no loss as the directors would be certain of the security. an advance was made., /'J, , ,’, i( It was pointed out tjia.t,the ’liinit was £2OO for- one year,' while th'?, factory was not to lend more..than,a, total of £2OOO. ; l . '•

Mr. Gibson outlined; thp j'igid' credit schemes in use in other places,, whereby t’ j borrower was virtually bound hand and foot by l- was not a . q“efition of going into bucß. a scheme as that demonstrated by Mr. : Gibson, . It would be only a (small matter., , Mr. Field moved that' the 'directors give consideration to -a scheme for advances to suppliers, and guarantees for temporary accommodation.On being put to the meeting the ..proposal was lost by 19 votes to 10. .. . ’ At a subsequent meeting bf the directors Mr. Walter C. Green, was re-elected chairman.